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Thursday, May 8, 2014

The Risks of Filing for Credit Card Debt Bankruptcy

One of the many mistakes of people today owns multiple credit cards.
Some people are simply drowned in debt because of credit cards. Have you seen
movies about women (mostly) dodging collectors because they can’t handle their
debts anymore? Those movies are not hyperboles. Those really happen.

The question is: is it
happening to you, too? You don’t have to answer that question out loud.
You’re here reading this. That can possibly answer the question. If you’re not
in debt, though, and you still want to use credit cards excessively because
you’ve found out that you can actually file for credit card bankruptcy, you
should continue reading this.

Yes, it is true that this is one way of getting out of debt.
However, this should only be considered if and only if every possible way of
getting out of debt is already exhausted. This should be the last resort.
Filing for credit card bankruptcy can be very personal. The only advantage of
it is finally getting rid of your debts, but have you considered the permanent
effects?

The Several But Severe
Consequences

üYou will have a negative mark for ten (10) years caused by your
bankruptcy file.

üPossibilities of losing properties are great.

üIt will cost you a lot of money to pay for the lawyers who will help
you file your bankruptcy and all the things you need to do along the way.

üEmployers frown upon debts. Chances are you will find it difficult
to look for a job or get a promotion if you have this kind of negative mark.

How Do I Avoid This
Problem?

If you’re already suffering from credit card debts, you need a cure;
not preventive measures. Lawyers can discuss with you thoroughly the things
that you can do before, during, and after filing for a credit card bankruptcy.
However, ask the lawyers if you can still benefit from debt elimination
programs. You have a silver lining over there!

On the other hand, if you are still on the way to days full of
regrets, you can prevent that from happening by knowing when exactly to use
your credit card!

üOne or two credit cards will do.

üUse the card for emergency purposes only, like for food, if your
fridge is empty and you still don’t have cash. That also applies for gas.

üDon’t use your card for things you cannot afford at the moment.

üAvoid making small purchases like coffee, lunch, dinner, a
discounted item of clothing- because sooner or later, these will accumulate.
And because they were small purchases, you will have this idea that they will
remain small.

üPay your bills on time.

The key here is to remain debt free! This is one of the best ways to
live a happy life. You can never be happy if you keep on thinking day and night
about how to pay your debts. You can’t even save, which is one of you
priorities.

Don’t spend a lot more than you can afford. Want to know how to
control the urge to shop? Try reading the previous post: Saying “NO” to Impulsive Spending.
And even there you’ll find out that having multiple credit cards is the first
NO-NO.